√ Answer: If your
estate is under $5M why gift? If you die with $4.9M, you won't pay federal
estate tax, but you might pay $400,000+ in state estate tax. If you give it all
away a minute before you die, no state tax and big savings!

√ Question: What if someone is sick?

√ Answer: Do a
durable power of attorney, authorizing unlimited gifts now, but be careful. That
is a broad and dangerous power. This is a serious double-edged sword.

√ Question: Is there another approach?

√ Answer: Put your
assets into a living trust and authorize two co-trustees to make gifts. Since
the trustees have nominal legal title to the assets, in contrast to an agent
under a power of attorney, this approach may be more practical to implement
quickly, but it is not assured.

√ Question: Are either of these approaches practical? How fast can you move assets?

√ Answer: Great
point. Instead, give a selected person the power to revoke your rights in the
living trust, making it a completed gift without moving assets. It can be
tedious to get a bank, investment firm, or brokerage house to shift assets. The
time these transfers take may prevent the planning you want. This is why, if
you can get comfortable, other approaches are better.

√ Question: Anything cooler?

√ Answer: Sure! Fund
a self settled domestic asset protection trust now in Alaska. You arguably
remove all assets from your estate now, but you can remain a discretionary
beneficiary of the trust so that you can benefit from the assets if you need
them. This is a big step for many people to take but if your health is poor or
you're elderly, paying $400,000 in state estate tax is not an optimal result
either.

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